Brazil Preview May 2010

Rio2016INSIDE THE SIX-YEAR PLAN OF BRAZIL’S TOP

TOURIST DESTINATION AS IT PREPARES TO HOST THE SUMMER OLYMPICS

LET THE PARTY BEGINONE MILLION PEOPLE DESCEND

ON CARUARU FOR THE PLANET’S LARGEST JUNE FESTIVAL

THE POWER OF SOLEBUZZ BUILDS FOR FRANCAL 2010—

THE LARGEST SHOE AND ACCESSORY TRADE SHOW IN LATIN AMERICA

T H E F I R S T U . S . P U B L I C A T I O N D E D I C A T E D E X C L U S I V E L Y T O B U S I N E S S , T R A V E L A N D B I L A T E R A L T R A D E W I T H B R A Z I L

MAY 2010

an advertising suplement to The Miami Herald

2 MAY 2010

contents // MAY 2010

Publisher

Editor-in-Chief

ContributingEditor (US)

ContributingEditor (Brazil)

Art Director

Controller

3Caruaru Parties All Month LongDuring the month of June, this northeastern town becomes the capital of Forró.

Rio 2016

HOW THE MOST IMPORTANT TOURISM

DESTINATION IN SOUTH AMERICA

PREPARES FOR THE GREATEST SPORTING

EVENT IN THE WORLD

EDUARDO PAES, MAYOR OF RIO DE

JANEIRO, CELEBRATES HIS CITY’S SELECTION

AS HOST CITY FOR THE 2016 SUMMER

OLYMPICS.

6The Big ShowsPlan your summer trip to Brazil around the country’s most important business events.

7 Francal 2010Spring and summer collections are on display at the hottest shoe, leather and accessory tradeshow in all of Latin America.

Brazil Preview is published once a month and inserted in The Miami Herald every third Sunday of the month. The entire content of Brazil Preview is copyrighted and may not be reproduced without the expressed written consent of the publisher. The Brazil Preview editorial board may not necessarily agree and is not responsible for opinions expressed by our columnists. Story queries should be submitted by e-mail to Eduardo Schneider ([email protected]).

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Staging “the planet’s largest June festival,” as its organizers are fond of claiming, is no small feat for the peo-ple of Caruaru. But going the extra

mile never has been an issue for the locals—especially considering that this 30-day affair attracts more than 1 million tourists from all over the world to a town with a population of nearly 300,000.

Who can blame tourists for making their way to the second-largest city in Pernambuco (behind Recife)? The famed Caruaru June Party, considered one of the world’s largest

St. John festivals (although St. Anthony and St. Peter also receive their due during the course of the month), features night after night of local cuisine (like pamonhas, sweet corn past rolled and cooked in corn husks), folk music and dancing, a 40-foot bonfire and much more.

A special Carnival-like trail was created to allow for the parade of Drilhas (short for quadrilhas) that dance to the sound of live bands performing on top of huge sound trucks. Caruaru’s São João party also includes performances from top Brazilian folk acts,

such as Elba Ramalho, Zé Ramalho, Falaman-sa and Chiclete com Banana.

The event has grown with each passing year, gaining international exposure, and helping in the development of the region and the buying power of the local population. Just how much does the monthlong celebration heat up the business climate in Caruaru? Not only does it create about 1,500 seasonal jobs and fill the region’s hotels to capacity, but it also boosts the region’s economy by close to $5 million.

According to surveys from the Labor De-partment and the Banco do Nordeste, about 10 million people from Brazil’s northeastern region have entered or are about to enter the middle class. This has triggered investments of more than $5 billion in the region. Caruaru, in particular, has undergone rapid growth since the 2005 expansion of Interstate BR-232, which connects the city to Recife. This has cut a once three-hour commute to only 90 minutes—and also eased traffic pouring in

and out of the June festival. As result of the investments in the area, the

infrastructure upgrades and the continued growth of the festival, more and more large corporations are participating in the June par-ty. Over the past couple of years, international giants such as Nestlé and Kraft Foods became sponsors at the Caruaru event alongside Bra-zilian household names such as beauty-care developer Natura, which, in 2009, showcased its first product developed exclusively for the northeastern region.

In 2010, the Scotch whisky Teacher’s will debut a VIP space exclusively for guests, clients and some privileged consumers. But VIP or not, if you’re in Caruaru during the month of June you have plenty of reasons to celebrate. n

Saints Alive!

If you’re going to Caruaru

HOW TO GOCaruaru is about 90 minutes from Recife. Tam, American and United Airlines have daily flights from Miami to Recife with stops in Manaus and São Paulo.

WHERE TO STAYCaruaru offers a number of bed and breakfasts, hostels and hotels, including (currency in U.S. dollars):Village Select Caruaru ($80/night)www.hoteisvillage.com.brBR Palace Hotel ($70/night)www.hotelentralcaruaru.com.brHotel Eduardo de Castro ($65/night)www.hoteleduardodecastro.com.brCaruaru Park Hotel ($65/night)www.caruaruparkhotel.com.br

WHAT TO DOCaruaru has a rich culture and some of its crafts centers and museums are worth visiting:• Alto do Moura – About four miles from downtown; you’ll find over 1,000 artisans creating memorable clay sculptures.• Ayrton Senna Motorsports Complex – The 484,000-square-foot complex features a 1.9-mile race track, 24 garages, timing tower, restaurants, bars, audio equipment and helipad.• Casa Museu Mestre Galdino – Also at Alto do Moura, this museum features the work of famous potter and clay sculptor Galdino. Photos, poems and original texts tell the story of the artist’s life.• Espaço Cultural Tancredo Neves – Built in 1935, this 532,000-square-foot historic architectural landmark houses a convention center and is the headquarters of the Fundação e Cultura and Tourism Bureau.• Morro do Bom Jesus – The city’s highest mountain reaches approximately 2,000 feet.

CARUARU WELCOMES THE MASSES FOR ALL OF JUNE TO ONE OF THE WORLD’S LARGEST ST. JOHN FESTIVALS.

CARUARU’S RENOWNED JUNE FESTIVAL ATTRACTS

MORE THAN 1 MILLION PEOPLE FROM ALL OVER

THE WORLD.

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first stop // DESTINATIONS IN BRAZIL THAT MAKE YOU WANT TO GO

4 MAY 2010

T he celebration began Oct. 2, 2009 and, in many ways, has yet to subside. Ever since the International Olympic Committee elected Rio de Janeiro as

the host city for the 2016 Summer Olympics, all of Brazil—indeed an entire continent—has been beaming. And with good reason. By earning the bid over favorites Chicago, Tokyo and Madrid, as well as three other applicant cities, underdog Rio will become the first South American country to host an Olympics.

The announcement last fall brought tears of joy to Brazilian president Luiz Inácio Lula da Silva. “It’s in our nature to embrace challenge and Brazil needs a challenge like this,” the president said. “All we needed was an opportu-nity to show what a great nation we are. This is a very emotional day for me. I’m prouder than ever to be Brazilian. Rio deserves this. Brazil deserves this. The people of Brazil deserve this.”

But lest anyone think the hardest part of this journey is over, think again. The clock is ticking on Rio, which has six years to create the facili-ties and infrastructure needed to accommodate the hundreds of thousands of visitors expected to descend on a city that already has more than

6.1 million residents. Rio is expected to receive approximately $50 billion in investments towards upgrades and new construction in a number of categories.

A survey of the BNDES (National Bank for Social and Economic Development) indi-cates that some $150 billion will be spent on infrastructure between 2010 and 2013—a 37.3 percent increase compared to investments made between 2005 and 2008. The same sur-vey shows that the port sector will have the greatest growth, from $2.7 billion to $7.5 billion. Much of this optimism is sup-ported by analysis made by large international financial institutions. For example, S&P granted Rio investment grade based on the belief that, with a strong and diversified economy, it will be able to maintain good short-term credit ratings.

However, Rio will not have to wait six years to see returns on its Olympic investments. The city’s workforce can expect immediate dividends through increased employment opportunities. According to Rio’s governor, Sergio Cabral, the games will create thousands of jobs in a variety of sectors. One of the primary areas of focus will be public transportation, highlighted by the addition of more than 30 air-conditioned, above-ground trains and an expansion of the current subway system. “We expect to triple the number of commuters by 2016, reaching three million passengers per day,” Cabral said.

Tourism, already the corner piece of Rio’s economy, also will receive a substantial boost. According to a survey conducted by the consulting firm Euromonitor International, Rio—already the top tourism destination in the Southern hemisphere with almost 3 million foreign visitors in 2008 alone—can expect an increase in foreign visitors of between 10 percent and 15 percent in 2016 (compared to the previ-ous year).

The Brazilian government, based on this expected growth spurt, already is preparing

for an economic boom. Construction and modernization projects in the hospitality sector received $537 million in financing incentives this March from the

BNDES. In addition to ensuring that Brazil will be prepared for the jaw-dropping lodging de-mands generated by an Olympics, the initiative has a “green” component. In a push for eco-friendly projects, incentives will be offered to

Let the Countdown BeginRIO PREPARES FOR ITS HISTORIC TURN AS HOST OF THE 2016 SUMMER GAMES — THE FIRST OLYMPICS EVER IN SOUTH AMERICA.

Read more about Rio and the 2016 Olympic Games at rio2016.com

RENDERINGS SHOW WHAT COPACABANA

BEACH AND THE GLORIA MARINA (RIGHT) WILL LOOK LIKE IN 2016 FOR

THE RIO OLYMPICS.

“All weneeded wasan opportunityto show whata great nationwe are.”

– President Luis Inácio Lula da Silva

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ADIDAS, OFFICIAL SPONSOR OF THE 2016 OLYMPICS, WILL BE PART OF SPORTS HISTORY IN RIO. BRAZIL PREVIEW SPOKE WITH RICARDO SDEI, MANAGER OF SPORTS MARKETING IN LATIN AMERICA FOR ADIDAS, ABOUT THE COMPANY’S ROLE IN THE SUMMER GAMES.

What expectations does Adidas have for the 2016 Olympic Games in Rio de Janeiro?As a sports brand, we have major expectations from events like this. Rio is, without a doubt, the ultimate stage for athletes of all sports. Since Adidas is the official Olympics sports partner, we have deep connections with the event. Adidas’ objective is to serve athletes with only the best in sporting equipment so they can reach the “impossible”; the games are the perfect op-portunity to celebrate this partnership. The fact that the games will take place in Rio, which is the market [in which] I participate actively, plus me being Brazilian, brings me even more satisfaction.

In your opinion, are there differences between these games compared to previous games held at cities in more developed countries?I can’t see any disad-vantages. Brazil and Rio will gain a lot by hosting events like the World Soc-cer Cup and the Olympic Games. Historically, these events always leave behind higher standards in development and infra-structure, no matter where they happen.

What is the immediate benefit a sponsorship like this brings to a brand like Adidas?The fact that our brand will be associated with the world’s top performance athletes is something we

consider an immediate benefit already.

What strategies will Adidas employ to com-municate its participa-tion in an event of this magnitude?It’s a bit early to give specifics about 2016. Nowadays the communica-tion strategies are going toward alternative media outlets, mostly in the digi-tal world. Before, the video sites were the way to go. Now the social media has taken over. It’s all happen-ing very quickly. I believe new media alternatives that we can explore may surface between now and 2016.

How do you measure the results of such a huge sponsorship?Adidas was built on its founder’s passion for serv-ing athletes with products that allow them to reach their maximum perfor-mance. Just to be involved as sponsors in events such as the World Soccer Cup, Olympic Games and UEFA Cup is an incredibly mea-surable result.

In your opinion, what will be the main attraction in the 2016 games?As a Brazilian native, I think the main attraction will be Brazil. Hosting these upcoming sporting events, including the Olympics is a unique opportunity. I am sure that this will cause a long-lasting positive impact on our country. And the best part is to realize that it’s all happening thanks to sports. n

Rio2016Adidas Scores Big

If you’re going to Rio today

HOW TO GOTam, American, Delta and United offer regular daily flights to Rio de Janeiro.

WHERE TO STAYRio is the No. 1 tourism destination in Latin America and offers a number of hotel options, including the world’s largest chains such as Intercontinental, Othon, Hilton, Marriott and others. Built in 1923, the historic Copacabana Palace also is worth exploring.

WHAT TO DO• Christ the Redeemer, one of the world’s grand Art Deco statues, is a must-see landmark in Rio. In 2007 this famous tourist spot—built 2,395 feet above sea level at Corcovado mountain—was elected one of the New Seven Wonders of the World.• The Sugar Loaf offers one of the best views of Rio. Ride the all-glass cable car, suspended 1,299 feet over the Guanabara Bay’s calm waters, for a

breathtaking sight. • The Maracanã Stadium is the third-most-visited spot in Rio. There, visitors can experience memorable soccer games, concerts and other major events. The stadium will host the final game of the 2014 World Cup soccer tournament. • Other destinations include the Botanical Garden, Rodrigo de Freitas Lagoon and the famous beaches of Copacabana, Ipanema and Leblon.

OLYMPICEVENTSITES

those projects that put the environment at the forefront of its design and construction.

Brazil becomes only the fourth country ever to host World Cup soccer (in 2014) and the Olympics in proximate years (Mexico, West Ger-many and the United States are the others). This rare double feature of global athletic events will give Brazil and Rio extraordinary interna-tional exposure. César Gualdani, a director for TNS Sport do Brasil, which specializes in sports research, explains how entrepreneurs from all over the world can benefit from such a spotlight: “The Olympic Games and the World Cup have their official partners and sponsors, but other corporations can also take advantage of sports initiatives, through individual sponsorship and

social actions.”In an effort to make the

process open to the Brazilian population, the City of Rio de Janeiro launched a Web site called Olympic Transpar-ency (www.transparenciaolim-pica.com.br), which will make public all information about the preparation and organiza-

tion of the Olympics and Summer Paralympics (to be held in the weeks following the Sum-mer Games). “This site will show how the city will address the issues related to the Olympic Games,” said Eduardo Paes, mayor of Rio de Janeiro.

Beyond the economic impact of the Olympic news, Brazil hopes that the post-announcement celebration sparks competitive fires on the field, as well. Orlando Silva, the country’s minister of sport, believes that Oct. 2, 2009 also could signal the countdown to a new era in Brazilian athletics.

“We must take advantage of the momen-tum around the games to transform Brazilian Olympic sports,” Silva said. “And 2016 will be the starting point for this transformation.”

BRAZIL’S PRESIDENT LULA AND GOVERNOR SERGIO CABRAL TALK ABOUT THE FUTURE OF RIO’S INFRASTRUCTURE AT A PRESS CONFERENCE.

RIO’S OLYMPIC PARK Basketball, handball, martial

arts, field hockey, tennis, track, cycling, water polo and platform diving, synchronized swimming

and swimming, and gymnastics

RIOCENTROBadminton, boxing, weightlifting and table tennis DEODORO ZONE (located in the Deodoro neighborhood)Horse jumping, shooting, modern pentathlon, fencing, BMX, canoe slalom and mountain biking

MARACANÃ ZONE (located in the north zone of Rio)Olympic Stadium João Havelange: athletics Maracanã Stadium: opening and closing ceremonies and final soccer matches Maracanãzinho gymnasium: volleyballMarquês de Sapucaí: bow and arrow and marathon finish line São Januário Stadium: rugby COPACABANA ZONERodrigo de Freitas Lagoon: canoeing, speed canoeing and rowing Copacabana beach: marathon swimming, triathlon and beach volleyball

Glória Marina: sailing Parque do

Flamengo: road cycling and walking

LEFT TO RIGHT:INTERCONTINENTAL HOTEL,

MARACANÃ STADIUM, SUGARLOAF’S CABLE CAR

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6 MAY 2010

events // what will happen in june/july 2010

JUNE

26th International Tradeshow for Out of Home Food Prodcuts and ServicesDate: June 7-10 Location: Expo Center Norte, São Paulo, SPOrganizer: BTS Feiras, Eventos e Editora, Ltda.Info/Contact: btsmedia.biz; [email protected] 7th Milk, By-Products and Ice Cream Industries International TradeshowDate: June 7-10 Location: Expo Center Norte, São Paulo, SPOrganizer: BTS Feiras, Eventos e Editora, Ltda.Info/Contact: btsmedia.biz; [email protected] 26th Packaging and Processes for Food and Beverage Industries International TradeshowDate: June 8-11Location: Pavilhão de Exposições do Anhembi,São Paulo, SPOrganizer: BTS Feiras, Eventos e Editora, Ltda.Info/Contact: btsmedia.biz; [email protected] Products and Services for Business Management National TradeshowDate: June 8-11Location: Centreventos Cau Hansen - Joinville, SCOrganizer: Messe Brasil Feiras e Promoção Ltda.Info/Contact: messebrasil.com.br; [email protected] 19th ABF Franchising ExpoDate: June 9-12 Location: Expo Center Norte, São Paulo, SPOrganizer: BTS Feiras, Eventos e Editora, Ltda.Info/Contact: btsmedia.biz; [email protected] 5th Automotive Industry Suppliers Brazil-South TradeshowDate: June 9-12 Location: Expotrade, Pinhais/Curitiba, PROrganizer: Diretriz Feiras e Eventos, Ltda.Info/Contact: feiraautopar.com.br; [email protected] 16th Meat Production Chain International TradeshowDate: June 15-19 Location: Centro de Exposições Imigrantes,São Paulo, SP Organizer: Agrocentro, Empreendimentos e Participações Ltda. Info/Contact: centroimigrantes.com.br; [email protected] Health and Environment in the Offshore Oil Industry International Tradeshow

and ConferenceDate: June 16-18Location: Centro de Exposições Jornalista Roberto Marinho, Macaé, RJ Organizer: Reed Exhibitions AlcantaraMachado S/A Info/Contact: protectionoffshore.com.br; [email protected] 4th Products and Services for Theme Parks, Buffets and Kids’ Parties International TradeshowDate: June 19-22 Location: Expo Center Norte, São Paulo, SPOrganizer: Francal - Feiras e Empreendimentos Ltda. Info/Contact: expoparquesefestas.com.br; [email protected] Christmas Ornaments International Tradeshow Date: June 9-12 Location: Expo Center Norte, São Paulo, SPOrganizer: Francal - Feiras e Empreendimentos Ltda.Info/Contact: feiranatalshow.com.br; [email protected] Chemical and Petrochemical Industry Suppliers International Tradeshow Date: June 21-24Location: Anhembi, São Paulo, SPOrganizer: Reed Exhibitions AlcantaraMachado S/A Info/Contact: feiranatalshow.com.br; [email protected] Equipment and Solutions for Environment Preservation International Tradeshow Date: June 22-24Location: Anhembi, São Paulo, SPOrganizer: Reed Exhibitions AlcantaraMachado S/A Info/Contact: ambientalexpo.com.br; [email protected] Industrial Recycling Technology National Tradeshow Date: June 22-25Location: Centro de Convenções da FIERGS,Porto Alegre, RS Organizer: FCEM - Feiras, Congressos e Empreendimentos Ltda. Info/Contact: fcem.com.br; [email protected] JULY

42nd Francal: Leather, Shoe and Accessory International TradeshowDate: July 5-8

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How to reach Brazilians.Wherever they are.

We have in stock a one-of-a-kind collection of idols, urns, vases and bowls handcrafted in the Amazon. The quality of each piece, its richness of detail and careful finish are achieved by the application of drawings on a planed surface of each ceramic. Because they are handmade, no two shapes or designs are alike. Please write to [email protected] to receive more details if you are interested on buying the whole collection, almost 150 pieces. Great price, great business opportunity.

Leave your event to us, from conception to completion.Blend Connections is a below the line agency with expertise in events and promotions focused on:

· Trade Shows· Relationship Marketing· Sampling and Test Drivers· Trade Marketing· Research

www.blendconnections.com

7 MAY 2010

events // continued

Location: Pavilhão de Exposições do Anhembi,São Paulo, SP Organizer: Francal - Feiras e Empreendimentos Ltda.Info/Contact: feirafrancal.com.br; [email protected] 23rd Crafts TradeshowDate: July 11-20Location: Centro de Exposições FIERGS,Porto Alegre, RS Organizer: Diretriz Feiras e Eventos, Ltda.Info/Contact: feiarters.com.br; [email protected] 8th São Paulo State Furniture TradeshowDate: July 20-23Location: Pavilhão de Exp. da Interior Eventos, Mirassol, SP Organizer: Multiplus Produções e Empreendimentos Ltda. Info/Contact: multipluseventos.com.br; [email protected] Supermix 2010: 5th Pernambuco’s Wholesale Distributors and Supermarkets TradeshowDate: July 21-23Location: Centro de Convenções de Pernambuco, Recife, PE Organizer: Greenfield Consultoria e Promoção de Eventos Ltda. Info/Contact: embalaweb.com.br; [email protected] BIO BRAZIL FAIR 2010: 6th Agroecology and Organic Products International TradeshowDate: July 21-23Location: Pavilhão da Bienal - Parque do Ibirapuera, São Paulo, SP Organizer: Francal - Feiras e Empreendimentos Ltda.Info/Contact: biobrazilfair.com.br; [email protected] 6th Health, Healthy Eating and Natural Products International TradeshowDate: July 21-23Location: Pavilhão da Bienal - Parque do Ibirapuera, São Paulo, SP Organizer: Francal - Feiras e Empreendimentos Ltda.Info/Contact: naturaltech.com.br; [email protected]

Leather and LaceTHERE’S NO BUSINESS LIKE SHOE BUSINESS AT FRANCAL 2010, THE PREMIER ACCESSORIES TRADESHOW IN LATIN AMERICA.

It’s not just business as usual this summer at Francal, the largest leather, shoes and accessories tradeshow in Latin America. It’s business that stands make both dollars

and sense for exhibitors, store owners and importers.

More than 1,000 exhibitors, 95 percent of which are Brazilian companies, will descend on the Anhembi Convention Center in São Paulo this July 5–8 for a show that not only defies description but also defies current economic trends. Credit Brazil’s strong recovery from the world financial crisis and solid results in the export sector as laying the groundwork for a show, which, several months out, already had reservations for 95 percent of its booths.

Store owners and importers seeking ad-vantageous deals traditionally make the trek

to Anhembi, the largest venue of its kind in Latin America with more than 800,000 square feet of convention space. Last year, nearly half of the 55,700 attendees were buyers from Brazil and 79 other countries, including the United States.

Historically, Brazil always has been one of the main shoe exporters to the U.S. For many years, U.S.-based companies have been devel-oping their products in Bra-zil due to the added value found in the Brazilian products. Though the currency exchange is unfavorable for importers, the shoe industry in Brazil has a competitive edge in terms of overall quality—raw materials and manufacturing—as well as originality of design.

It’s easy to see why Francal continues to

play a crucial role in the development of long-term business relationships. The spring-sum-mer collections featured at the show represent roughly eight months worth of retail sales; this prompts a boost in the manufacturing sector that moves millions of dollars annually in Brazil.

Clearly, it takes a village at Francal, which continues to receive visitors from countries all over the world. The countries that send the

most representatives in-clude Bolivia, Paraguay, Chile, Venezuela, Peru, EUA, Argentina, Italy, Portugal, South Africa, Philippines, Colombia,

Spain, Poland, Ecuador, Mexico, Uruguay, China, Japan and Angola.

Companies outside Brazil interested in par-ticipating at Francal 2010 either as exhibitors or visitors can contact Francal’s Management of International Affairs by e-mail at [email protected]. n

Read more about Francal 2010 atfeirafrancal.com.br

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